Franchising ‘shows big benefits’ in NatWest/bfa Franchise Survey 2012

The NatWest/bfa Franchise Survey has recently been published. The study is a unique source of primary and verifiable research amongst franchisors and franchisees, and is the industry’s most thoroughly researched report.

It was heartening to note that franchising has proven to be extremely resilient according to the survey, with a net increase of 29 systems leading to a total of 929 franchises available in the UK – despite the recent continuing economic pressures on the economy as a whole.

Indeed, it seems franchising is a particularly good option for many small businesses at present, as an alternative to ‘going it alone’ and trying to set up a new business in a difficult and competitive climate.

More than four fifths (81%) of those surveyed by the British Franchise Association for the NatWest-sponsored study said that they believe franchising gives them a competitive edge – and nearly half cited a “big competitive advantage” – when compared with non-franchise small businesses.

For those 47% of franchisees who saw the biggest benefits, access to suppliers is much easier than for lone business people, advertising and marketing are carried out collectively, cutting costs and raising impact, while the protection of being part of a big brand helps to improve their short to medium-term prospects for prosperity.

The study reports not only these perceived benefits for franchisees, but also positive performance over the past year, despite turbulence in the wider economy.

Employment levels, while reported as an average which allows for some discrepancies, are up across the board, and particularly in part-time roles.

Average turnover is up by 4% year-on-year, with a generally healthy outlook for franchises as a whole.

And franchisee-franchisor relationships are at their best level for a decade, with 90% of all franchisees saying a positive, satisfactory relationship is in place.

With turbulence continuing elsewhere in many industries, and in the employment market as a whole, it’s good to see franchising remains a popular alternative for those looking to create a new business, and that it is delivering healthy results.

RBS Natwest launch £100m fund to support UK franchising

RBS Natwest have today launched a £100m fund to help boost the UK’s already-buoyant and growing franchise market. With small business being heavily relied on over the next few years to drive job creation and recovery in the wider UK economy, franchises are playing a very important role and this new fund is designed to “kickstart growth” and create, in their estimation, up to 24,000 new jobs by helping both new and existing franchises to grow.

Peter Ibbetson, chairman of small business for NatWest and RBS says: “Everybody wants to see banks funding business growth, as well as helping new businesses get off the ground to create jobs – this is exactly what this fund will deliver. The industry has shown itself to be virtually recession-proof, so for the many people left out of work by the recession franchising is a great way to start up a business – plus they get the support of a big brand behind them.”

Franchising is already well-established in the UK with franchised businesses regularly outperforming stand-alone start-ups and the industry as a whole bucking the recession of the past couple of years. At the height of the economic downturn in 2009 the franchise industry’s turnover increased by nearly £1bn to £11.8 billion, with 94% of franchisors optimistic about the future of their business.

Interestingly, in a recession that appears to be hitting women disproportionately hard in terms of redundancies, more and more women are seeing franchising as a route to self-employment and taking control of their professional and financial future. According to the BFA 2010 Survey, the number of women becoming franchisees has increased by 86% since 2003.

Key points of the RBS Natwest Fund include:

• Loans of up to 70% for new franchise businesses
• Two years free banking for new franchises
• Reduced fee of 1%
• Up to 12 months of capital repayment holidays
• Loans for existing franchise businesses
• Access to an unlimited expertise from the dedicated RBS/NatWest franchise team

To find out more about the fund, visit NatWest.com/franchise or RBS.co.uk/franchise or call the NatWest and RBS dedicated franchise team on 0800 092 9117

Small businesses look to cut costs in anticipation of lower public spending

An interesting article on the Telegraph’s website yesterday estimates that small companies in the UK are already in the process of reducing their energy, comms and other utility costs by £1.68bn in anticipation of falling income as the governments spending cuts begin to bite. As the article demonstrates, and as our consultants see in practice every day, businesses of every size and in every sector of the UK economy can make significant savings on a whole range of overheads if they shop around. The trick to long-term savings, however, is to have the time and the knowledge not just to identify the best deals, but to implement and, most importantly, to regularly review them, not only when the economy is being squeezed, but when it’s booming too, which is why the Auditel service is so much in demand at the moment.

Small Businesses target £1.68bn in supplier savings – By Roland Gribben, 15th Nov 2011

Managing Costs still top priority for CFOs fearing double dip recession

A survey carried out recently by Deloitte found that the number of CFO’s feeling optimistic about the UK economic outlook has dropped from 40% in Q1 to only 24% in Q2. The main reason appears to be increasing fears of a double-dip recession resulting, at least in part, from uncertainty about what impact public spending cuts and tax rises will have on the private sector. The average CFO now feels the probability of another recession stands at 38%, up from 33% in Q1.¹

While lack of liquidity and the availability of cash is less of a concern than at the height of the credit cruch, CFO’s are still worried about growth, especially given the weakness of the global recovery and the UK’s export market, so maintaining tight control of their costs is still a top priority.

This certainly seems to be bourne out by the level of enquiry we are experiencing. Our client base has risen by 11.4% this year, and income returns reported by our consultants are also rising strongly as more and more organisations realise effective cost management is vital to their future – not just a ‘nice to have’ – and look for professional help and advice.

¹ Telegraph Online, 5th July 2010

Auditel re-elected to council of the UIA

We’re pleased to announce that our Facilities Services Director, Howard Ward, has been re-elected to the Council of the Utilities Intermediaries Association (UIA), as one of two representatives for Small Businesses. Howard was a founder member of the UIA Council back in 2006, when the Association was established in response to growing concern among legitimate third party intermediaries about sharp practices being used by some in the industry (a ‘third party intermediary’, or TPI, being anybody who facilitates energy purchasing contracts between consumers and suppliers, for example a consultant, broker or agent).

Since then 23 TPIs have been awarded Full Membership by demonstrating compliance with the Association’s code of practice and are entitled to carry the UIA approval logo, while all the major energy suppliers, Energywatch and the industry regulator, Ofgem, have pledged their support.

Energy prices top FD list of concerns

According to the results of a survey carried out the Carbon Trust to launch it’s new Best Advice campaign, the UK’s finance professionals are more worried about energy prices and possible tax riases than a change in government or environmental compliance.

With Ofgem estimating that energy prices may spike by 60% over the next seven year, it’s not hard to see why this is such a concern, nor why Auditel consultants are in such high demand to help FD’s and UK organisations manage both their energy purchasing and usage policies.

Energy prices top list of FD concerns

According to the results of a survey carried out the Carbon Trust to launch it’s new Best Advice campaign, the UK’s finance professionals are more worried about energy prices and possible tax riases than a change in government or environmental compliance.

With Ofgem estimating that energy prices may spike by 60% over the next seven year, it’s not hard to see why this is such a concern, nor why Auditel consultants are in such high demand to help FD’s and UK organisations manage both their energy purchasing and usage policies.

Meet Auditel at the NEC Franchise Exhibition 2009

If you’re looking for a fresh challenge or a new direction in your career and want to explore the possibility of self-employment then the National Franchise Exhibition will be well worth a visit. Being held at the NEC on Friday 2nd and Saturday 3rd October with over 100 BFA accredited franchisors it’s an ideal opportunity to explore the many opportunities franchising offers to start your own business.

The Auditel recruitment team will be on Stand F190 and would welcome the chance to meet with anybody interested in developing a home-based professional business as a member of the UK’s leading network of cost and purchase management consultants. In addition, our Business Development Manager, Ed Brewer, will be presenting a seminar called “In Business for yourself not by yourself – how to choose your perfect franchise” at 12:15pm on both days, while one of our consultants, Denis Brennan, will be on the whichfranchise.com Franchisee panel on Friday 2nd.

For more information about the exhibition or to register for a free ticket, contact Tara Martin on 01962 863915.

Discover franchising – new dates for May 09

Our new series of Discovery Seminars has been going extremely well so we’ve added some more dates for May. Seminars are held at our head office training suite in Winchester and start at either 10am or 1.30pm. As well as presentations and Q&A sessions about the Auditel cost management consultancy opportunity, you will have the chance to meet members of the Support Team and, if there is a training session in progress, perhaps also with existing franchisees.

Employment outlook gloomy…

A survey carried out by Manpower and published on Tuesday shows that UK businesses are more reluctant to take on new staff than at any time since 1994. The credit crunch and economic slowdown has hit the construction sector, high street retailers and finance and business services companies particularly hard. Read more…